Macroeconomic data: Israel compared to OECD

Due to the continued strength of the Shekel against the US dollar and the Euro, it is interesting to draw some macroeconomic comparisons between Israel and the OECD average.

The most recently available data (June 2025) for inflation, unemployment, and gross domestic product growth were used.

Spoiler alert: Israel performs as a mini-state, caught in an eight-front war and boycotted by what can now be described as anti-Semitic states such as Germany, France, the UK, Canada, and Australia, because Israel refuses to abandon its status as a state and expose its population to genocide by Islamic Arab occupiers (also called “Palestinians”) of Jewish land.

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Terrorist organisations and their state sponsors, such as Qatar, Turkey, and Iran, incessantly declare almost daily that they intend to destroy the Jewish state and conquer Israel’s capital, Jerusalem.

The genocidal attack of Hamas on October 7, 2023, is proof that the Arab-Muslim world feels the same way. Some Arab states claim to be “moderate” and “only” demand the establishment of an Islamic terrorist state called “Palestine” in the Jewish heartland.

Against this backdrop, the collected macroeconomic data are excellent, but for the OECD countries, they are actually embarrassing.

Inflation: Israel (3.3%) is below the OECD average (4.2%), showing better control of price pressures despite war-related supply issues.

GDP Growth: Israel’s Q2 2025 contraction (-3.5%) contrasts sharply with the OECD’s positive growth (~3.1–3.3%), but its annual 2025 forecast (3.4%) is slightly above the OECD average, indicating resilience.

Unemployment: Israel’s rate (4.3%) is slightly better than the OECD average (4.9%), though structural labour market issues pose challenges.

Israel’s economy faces unique pressures from the ongoing war, which aims to annihilate Israel. The war has disrupted Q2 2025 growth and widened fiscal deficits (projected at 4.7% of GDP in 2025). However, we see soaring investments in startups as reported on VonNaftali. Israel is better positioned for the future.